This invention relates generally to debit cards and, more particularly, to a valued card system and method that reimburses the purchaser a percentage of a balance remaining unused by a recipient at the expiration date of the valued card.
Commercial transactions involving payment for goods and/or services typically involve some form of transfer of funds between the purchaser and the seller. Such transfers may include a payment by cash, check or any suitable negotiable instrument. Such payments may also be made using a credit card or a debit card. Credit cards and debit cards have enjoyed increasing popularity for payment on accounts and for purchasing goods and/or services due to the distinct advantages associated with credit cards and debit cards, including privacy and security advantages. More specifically, if a card is lost or stolen, its owner is normally exposed to only limited liability, if any, for its misuse. Further, various security measures tend to minimize unauthorized card usage. By verifying cardholder identities and by invoking other security measures, commercial institutions have achieved some measure of success in curbing credit/debit card fraud.
A banking institution issues a credit card to a card owner under an agreement including terms and conditions in which the card owner is responsible for payment on an account. For example, when the card owner purchases goods and/or services on the credit card a balance is created on the account to essentially provide a line of credit. Pursuant to the agreement, the card owner is responsible for payments on the balance.
In contrast to credit cards, a debit card facilitates transferring funds from a card owner's account, such as from a corresponding checking account established with a banking institution. The funds transferred during a transaction for goods and/or services are deposited in the card owner account prior to the transaction. Thus, unlike a credit card that establishes a line of credit, a debit card transaction is limited by the amount of funds deposited in the corresponding checking account at the transaction time.
A gift card is one type of debit card. A purchaser purchases a gift card from a shopping mall, a department store, a grocery store or another point-of-sale retail establishment in a desired amount or denomination, such as $50.00, $100.00 or $250.00. The purchaser gifts the gift card to a recipient, who is then free to purchase goods and/or services of his or her choice with the gift card utilizing all or only a portion of the value on the gift card. Many conventional gift cards include expiration dates on which the gift card expires and any balance of the value is no longer available for use. At least some gift cards expire over a time period. For example, on the purchase date a purchaser may purchase a gift card having a purchased value of $100.00. At one year from the purchase date, the gift card may have a maximum value of $50.00 and at two years from the purchase date the gift card may have a maximum value of $0.00. Any portion of the purchase value unused at the expiration date results in an earlier transfer of funds to the issuing institution without an obligation to transfer any goods or services to the recipient and/or to reimburse the purchaser for any remaining balance of the purchased value.